Legal Question in Real Estate Law in Tennessee

You can quitclaim the property to your daughters. You may incur a gift tax if you are giving them the house without receiving payment from them. You should consult with a tax advisor about the gift tax implications. As the person making the gift, you may be responsible for paying both federal and state gift tax. Payment of the tax is your legal responsibility, not the responsibility of the recipients of the gift (in this case, your daughters).

Also, consider that transferring the property now may disqualify you from Medicaid approval, should you need nursing home care and want financial assistance through Medicaid. Any transfer of property for less than fair market value (such as gifting your property to your daughters) likely will be considered a "fraudulent" conveyance if the transfer happens within five years of your application for Medicaid.

For example, if you transfer the property this year and apply for Medicaid anytime in 2011 - 2015, Medicaid will require you to spend an amount equal to the fair market value of the property on your own nursing home care, before you can receive Medicaid benefits. This is something you should discuss with a qualified elder law attorney familiar with Tennessee Medicaid law.

After considering the possible legal issues, if you still want to transfer title to your daughters, you should retain an attorney to draft the quitclaim deed for you to insure that title is transferred accurately. The cost of such a deed should be minimal, but it is important to have an attorney draft it for you.